25th Jul 2014 11:54
LONDON (Alliance News) - Red Rock Resources PLC Friday said it has agreed to extend the initial exclusivity period on the sale of its Colombian interests to Nicaragua Milling Co Ltd for 30 days until August 11.
The company said that after this period, NMC will have the option, with Red Rock's acceptance, to pay USD50,000 to extend the exclusivity period until September 10 if required.
Red Rock said that its planned sale remains binding between the parties, but it is able to have limited interactions with alternate buyers who have approached it.
The company entered the letter of intent with NMC in May. In return for USD5 million, Red Rock agreed to sell its 100% stake in American Gold Mines Ltd, which owns a 50.002% interest in Four Points Mining SAS, the owner of the El Limon mine, as well as its loans to Four Points Mining.
The company expects the deal to close by October 10 if the second extension is required.
"NMC intend to send a metallurgist to the visit the plant in the next two weeks, and following that report we should have a good idea of the remaining timeline for completion," Red Rock Chairman Andrew Bell said in a statement.
Red Rock shares were up 2.2% to 0.266 pence on Friday.
By Tom McIvor; [email protected]; @TomMcIvor1
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